Fresh weakness hits stocks

Equities have fallen again, thanks to a string of warnings about the global economy.

Selling continues across Wall Street

“There has been no end to the bearish moves of the past few days, with the final session in the red following a trio of warnings about the global economy. The IMF, the World Bank and FedEx have all given investors reason to worry, and investors have opted to continue their flight from equities. Given that the Fed is expected to renew its pledge of tighter policy next week, and inflation shows no sign of slowing, these warnings may actually be on the optimistic side, suggesting the actual outcome for global markets may be worse.”

Pound bounces back above $1.14

“While it touched a fresh two-year low today, the pound is trying hard to finish the day above $1.14. If it does, it might be that we have seen an end to the selling for now. But as with equities, the outlook will struggle to get much brighter, even if the BoE opts for a 75 bps move next week.”